Thursday, September 3, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
The West Wing Residences at Eton Properties Philippines, Inc.’s masterplanned Eton City in Laguna stands on a 100-hectare lot that was supposed to be a golf course.
LUCIO C. TAN-led Eton Properties Philippines, Inc. continues to launch more projects amid a recovery in the real estate sector.
Eton Properties President Danilo E. Ignacio said confidence in the property sector is coming back, citing strong sales. Sales in August alone, he noted, is already comparable to Eton Properties’ combined January and February sales.
"Sales in August was the highest for the year and we are surprised that the market remains strong even in the ghost month. This shows that confidence is coming back and the property sector has already recovered," Mr. Ignacio said in a news conference.
Eton Properties yesterday launched its fourth project for the year, aiming to tap overseas Filipino workers and start-up families, retirees, and families upgrading to a larger home.
Dubbed West Wing Residences, the 100-hectare lot is the company’s first middle-income project at the masterplanned Eton City in Sta. Rosa, Laguna. It will also be the first in the area to offer houses and lots to buyers, under a plan that involves four phases.
The first phase will cover at least 20 hectares, offering more than 300 units which will range from an 80- square-meter (sq. m.) lot with a two-bedroom house, to as big as a 130-sq. m., four-bedroom unit. Prices range from P2.36 million to as high as P4.88 million.
"Should this be successful, we have [lands reserved] that will take care of our future projects," Mr. Ignacio said.
Eton Properties expects to turn over the first phase by 2012.
Mr. Ignacio said the lot where West Wing will rise was supposed to be for a golf course but "because of the crisis, demand for high-end [projects] has weakened and there is now a high demand for middle-income houses."
Aside from the amenities available, which include an open field for outdoor sports, a school might be opened.
Mr. Ignacio said Eton Properties is in talks with a school, but did not disclose others details except that six hectares had been allotted for it.
Mr. Ignacio also said his firm is negotiating with foreign investors to develop 30 hectares of Eton City into a retirement community.
"The strategy is to first populate the whole Eton City before we develop central business districts," he said.
The company has developed only less than 10% of the 1,000-hectare Eton City in Laguna.
The company earned P40.6 million in profits from January to June, or a turnaround from a loss of P140.2 million in the same period, due mostly to substantial construction in three projects.
Mr. Ignacio said Eton Properties expects to start booking "decent profits" in the future as revenues from more projects are booked.
Three more projects are in the pipeline.
"September will still probably be strong since there is already renewed confidence in the sector. Investors are also more confident in putting their money in the property industry because it is the only one that did not lose its value last year unlike other investment vehicles," Mr. Ignacio said.
Nonetheless, Eton Properties remains careful before starting new projects since the domestic economy has not yet fully recovered, he said.
Eton Properties’ projects cover the residential, commercial and office segments.
Shares in the company dived by 4.2% or P0.10 to P2.28 apiece yesterday. — K. J. R. Liu
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